Personnel Management or Human Resource Management

Personnel Management/ Human Resource Management VIMAL JOSHI

Unit-I Concepts & Perspectives of HRM; HRM in changing environment, HRM functions, Role of HR Practitioners; HR Policies, Corporate objectives and Human Resource Planning.

Modern Perspective of HRM/PM

The growth of personnel management/ human resource management in U.S.A. and U.K was evolutionary in nature. It took place because of voluntary efforts of employers. But in India, it grew because it was made compulsory by government. In 1931, ‘Royal Commission on labour’ recommended appointment of labour officer. So that labour problems might be solved. In 1948, Factories Act made it obligatory for certain industrial enterprises to appoint welfare officers. The Scope of Personnel management has increases because, task of personnel manager is not only confined to recruitment of workers but also to looking after their welfare & handling their grievances. Under influence of technological development, organisation become complex and needs specialized skills & professionals. As a result, emphasis is being given to training & development aspects. Personnel management is no longer restricted to wage earners in factories. It has become equally important in offices, sales organisation, hospitals, development institutions & in management itself. The other term used, in personnel problem & techniques are ‘labour relations’ and ‘industrial relations’ which are used interchangeably but it is useful to distinguish them. The term ‘Labour relations’ refers to relations between management & unionised labour. Which includes negotiations of contracts with unions day to day relations with union leads, government regulation of terms & conditions of employment. The term ‘industrial relations’ is used as synonymous with ‘Personnel management’. In India, the field of Personnel Management has 3 Branches – (i) Personnel Administration (ii) Industrial Relations (iii) Labour Welfare

(1) Personnel administration- deals with administrative aspects such as recruitment, selection, placement, promotion, wages and incentives etc.

(2) Industrial relations – deals with employer employee relationship, negotiations & collective bargaining etc.

(3) Labour Welfare- deals with working conditions of employees by provision of facilities such as canteen, housing, recreation, education etc.


Ques. 1 Define HRM. How HRM functions are changing business environment? Ans. Human Resources Management is defined as policies and practices Involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising. These include:

- Conducting job analyses (determining the nature of each employee’s job). - Planning labour needs and recruiting job candidates - Recruitment - Selecting job candidates - Orienting and training new employees - Managing wages and salaries (compensating employees) - Providing incentives and benefits - Appraising performance - Communicating (interviewing, counseling, disciplining) - Training and developing managers - Building employee commitment

The scope of HRM has changed over the fast few years. However, this Change has been relatively slow in comparison to the changes in their area of business, management and administration. Some HRM Sub-functions seems to be breaking away from HRM, other seems to be new sub-areas while still other seem to be changing only in term of their relative emphasis and degree of importance. Many of these changes depend on he size of the organisation in which the HRM functions occurs, the managerial philosophies, the growing importance of the functions, the changing organisational demands, employee needs and societal concerns. Managerial and organisational development, Manpower planning, organisational are incoming areas, i.e. they are now going to receive substantially more attention, they did not have any they are now going to receive substantially more attention, they did not have any prominence in the past. Training and managerial development and personal research have become increasingly important today, while the importance of appraisal, wage and salary administration, has somewhat declined in terms of relative emphasis. Employee benefits and services and worker’s health and safety have always been important personal concerns. Labour relations, public relations and plant security are ‘outgoing’ HRM sub areas which have been taken away from HRM department. Today’s it’s firm’s workforce, its knowledge, commitment, skills and training that provides the competitive advantages for world class companies. And its HR’s job to build that competitive advantages. That means an upgrading of HR’s traditional role. Earlier, personal people first took over hiring and firing from supervisors, ran the payroll department and administrated benefits plans. The job consisted largely of ensuring that procedures were followed. The new technology in the areas like testing and interviewing began to emerge the promotion. Today, HR’s role is shifting from protector and screener to strategic partner and change agent. The metamporphosis of “personal” to “Human Resources” reflects that. In today’s flattened downsized and highly performing organisations, trained and committed employees- not machine are firms.


What is Human Resources Planning? How can NRP be integrated which Corporate objectives? Ans. “Manpower” human resources” may be thought as the total knowledge, skills, creative abilities, talents and aptitudes of an organisation’s work force, as well as the values, attitudes and benefits of an involved. “Manpower Planning” and “human resources” planning are synonymous. Human resources or manpower planning is “the process by which a management determines how an organisation should move form its current manpower position to its desired manpower position. Through planning a management strives to have the right number and right kinds of people at the right places, at the right time to do things which result in both the organisations and the individual receiving the maximum long range benefits. Human Resources Planning consists of series of activities

a) Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in industry or in terms of judgmental estimates based on future plans of a company.

b) Making an inventory of present manpower resources and assessing the extend to which these resources are employed optimally.

c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirement to determine their adequacy, both quantitatively and qualitatively.

d) Planning the necessary Programmer of requirement selection, training, development, utilisation transfer, promotion, motivation and compensation to ensure that future manpower requirement are properly met.

The ultimate mission of human resources planning is to relate Future human resources to

future enterprise needs so as to maximize the future return on investment in human resources. In effect the main purpose is one of matching or fitting employee abilities to enterprise requirements with an emphasis on future instead of present arrangement. In order to integrate human resources planning with corporate point of time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors effect this determination. They include business forecasts, Expansion and growth design and structural changes, management philosophy, Objective of HRP

(i) To ensure optimum use of human resources currently employed. (ii) To avoid balances in distribution & allocation of human resources. (iii) To assess or forecast future skill requirements of organisations over all objectives. (iv) To provide control measure to ensure availability of necessary resources when

required. (v) To control cost aspect of human resources. (vi) To formulate transfer & promotion policies.


Benefits:-

1) It results in reducing labour cost as it helps the management to anticipate shortages or surpluses of manpower and correct these imbalances before they become unmanageable & expensive.

2) It helps in making optimum use of workers skill with in the organisation. 3) It leads to improvement in overall business planning process. 4) It enables identification of gaps of existing manpower so that connective training could

be imported. 5) It leads to greater awareness of importance of sound man power management through out

the organisation. 6) It serves as a tool to evaluate effect of alternative manpower actions & policies.

The Process of Human Resource Planning

1) Objectives of Manpower Planning:- The persons concerned with manpower planning must be clear about goals of manpower planning because once the wrong forecast of future requirement of human resources are made, it may not be possible to rectify the errors in short-run. 2) Current Manpower Inventory:- Assessment of demand for operating personnel presents less problems of uncertainty & current manpower supply can be adjusted accordingly. But for supervisory and managerial levels projection is complex problem because required talents are not available at a short notice. This will also help in drawing recruitment & development plans to meet the needs of certain skills future. 3) Demand Forecasting:- A proper forecast of manpower required in future say, after one year, two years & so on must be attempted. The factors relevant for manpower forecasting are as follows. (i) Employment Trends:-

Objective of HR Planning

Inventory of HR Skills (Finding

Gaps)

Work Study & Demand

Forecasting

Determine Job Requirements

Recruitment Plan

Selection Procedure

Training & Development Programme

Appraisal of HR Planning


Manpower planning committee show examine number of employees on pay roll during past 5 year to knew trend within each group to determine whether particular group has been stable or unstable. (ii) Replacement Needs:- arises due to death, retirement, resignation & termination of employees. It may relate to supervisory, skilled, clarical groups and must be anticipated in advance. (iii) Productivity:- Gain in productivity will also influence requirements of manpower. Planning for productivity has several aspects. The first aspect relates to effective utilisation of manpower. The second aspect relates to installation of more productive tools, equipments. The last aspect relates to matching of skills with requirements of jobs. (iv) Growth & Expansion: - A good organisation always tries to adopt itself to change in method & techniques of Production. Therefore Manpower planner should take all these factors into account while studying impact of various business expansion plans on manpower requirements. (v) Absenteeism:- Means a situation when a person fails to come for work when he is scheduled to work. Due to absenteeism work get upset leading to overtime work which in turn leads to increased cost of production. The management should go into cause of absenteeism & attempt to reduce absentism as far as possible. (vi) Work Study:- Can be used when it is possible to apply work measurement to know how long operations should take & amount of labour required. This is also known as ‘workload analysis.’ (4) Job Requirements:- Job analysis is the qualitative aspect of manpower requirements since it determines what is the quantum of work which an average person can do on a job in a day. It facilitates division of work in to different jobs. (5) Employment Plans:- This phase deals with planning how organisation can obtain required number of right type of personnel as reflected by personnel forecasts.


(6) Training & Development Programme:- Training is essential not only for new employees but also for old employees for improving their performance. Similarly executive development programmes have to be devised for development of managerial personnel. The talent of employees are not fully productive without a systematic programme of training & development. (7) Appraisal of Manpower Planning:- After training programmes have been implemented, an appraisal must be made of effectiveness of manpower planning. Deficiencies in programmes should be pointed out & catalogue of manpower inventory should be updated periodically. Conective actions should also be taken whenever it is necessary to remove deficiencies in manpower planning.

UNIT-II Job Analysis, Role Analysis, Methods of Manpower Search, Attracting and selecting HR; Induction and socialization, Manpower training & development; Career and succession Planning, Managing Organisational Renewal.

JOB ANALYSIS

The procedure for determining duties and skill requirements of a Job and kind of person who should be hired for it. While manpower inventory is concerned with telling ‘what employees can do’, Job Analysis assesses ‘what employees are doing.’ From job analysis, specific details of what is being done and skills utilized in job, is obtained. It enables managers to understand jobs and job structure to improve to work flow or develop techniques to improve productivity. It also involves job design or redesign, co-ordinating demands on available time, individual psychological needs, technical procedures and desired performances. Before we proceed to discuss job analysis in detail, certain terms relating to job need to understand. These terms are:- Job:- A job may be defined as a “collection of tasks, duties and responsibilities which as a whole, is regarded as a regular assignment to individual employees,” and which is different from other assignments. In other words, when the total work to be done is divided and grouped into package we call it a “job.” Job Description: - It is a written record of duties responsibilities and requirements of a particular job. It is concerned with the job itself & not with the work. It is a statement describing the job in such


terms as its title, location, duties, working conditions & hazards. In other words, ‘what is to be done’, and ‘how it is to be done’ and ‘why’. It is a standard of function which defines appropriate & authorised contents of a job. Job Specification: - It is a standard of personnel and designates the qualities required for an acceptable performance. It is a written record of requirements sought in an individual worker for a given job. Job Design:- It is the division of total task to be performed into the manageable and efficient units-position department and divisions, and to provide for their proper integration. After a job has been defined, it is analyzed i.e., each task is described in detail. It is a procedure and a tool for determining specified tasks, operations and requirements of each job. “It is the process of getting information about jobs: specially what the worker does; how he gets it done; why he does it’ skill, education and training required; relationship to other jobs; physical demands, environmental conditions.” In other words, it refers to the anatomy of job. It is a complete study of job, embodying every known and determinable factor, including duties and responsibilities involved in its performance, conditions under which performance is carried on, nature, nature of task, qualities required in worker and such conditions of employment as pay, hour, opportunities and privileges. It also emphasizes relation of one job to other in the organisation. Purposes and Uses of Job analysis:- Job analysis is an essential ingredient of kind personnel Management. It is major input to forecasting human resource requirements, job modification, job evaluation, determination of proper compensation and writing of job descriptions. The fundamental importance to manpower management programmes. The information provided by Job analysis is useful, in almost every phase of employee relations. (1) Organisation and Manpower planning:- Job analysis defines labour needs in concrete terms, coordinates activities of work force, and clearly divides duties and responsibilities. (2) Recruitment, Selection:- By indicating specific requirement of each job (ie, Skills and knowledge), it provides basis for hiring, training, placement, transfer and promotion of personnel. The goal is to match job requirement with a workers aptitude, abilities & interests. (3) Wages and Salary: Administration:-


Job Analysis helps in salary and wages administration by indicating qualifications required for doing a specified job & risks and hazards involved in its performance. (4) Job Re-engineering:- It provides information which enables us to change jobs in order to permit their being manner by personnel with specific characteristic & qualification. This takes two forms:- (a) Industrial engineering activity:- Which is concerned with operational analysis, motion study, work simplification methods and improvements in place of work and its measurement & aims at improving efficiency, reducing unit Labour costs and establishing the production standard which the employee is expected to meet. (b) Human engineering activity:- Which takes into consideration human, both physical and psychological, & prepares increased efficiency & better productivity. (5) Employee Training and Management Development:- It provides the necessary information to the management of training & development programmes. It helps it to determine the content and subject matter of in-training courses. It also helps in checking application information, interviewing, weighing test results & in checking references. (6) Performance Appraisal:- It helps in establishing clear-cut standards which can be compared with actual contribution of each individual. (7) Health and Safety:- It provides an opportunity for identifying difficult conditions & unhealthy environmental factors so that corrective measures may be taken to minimise and avoid the possibility of accident. This, it is systematic procedure for securing and reporting information which defines a specific job. It determines the qualifications required for a job, provides guidance in recruitment & selection, evaluates current employees for transfer or promotion, and establish requirement for training programmes.


Steps in Job Analysis There are 5 basic steps required for doing a job Analysis:- Step 1 Collection of Background Information According to terry, “the make-up of a job, its relation to other jobs, and its requirements, for competent performances are essential information needed for a job evaluation. This information can be available by reviewing available back ground information. Such as Organisation charts (Which show how how job in question relates to other job & where they fit into overall organisation. Class specificiations – Which describes general requirement of class of job to which the job under analysis belongs) Job descriptions - which provide a starting point from which to build revised job description. Step2: Selection of Representative Position to be Analysed:- Since the analysis of all jobs would be time-consuming, few representative positions should be analyzed. Step3: Collection of Job Analysis Data Data should be collected regarding employee qualification and requirements, either from employees who actually perform a job or from other employees (Such as foreman or supervisor) who watch the workers doing a job and thereby acquire knowledge about it or from outside persons knows as the trade job analysis who are appointed to watch employees performing. The duties of such a trade job analyst are (i) to outline complete scope of a job & to consider all physical and mental activities involved in determining what the worker does. (ii) find out why a worker does a job and (iii) Skill factor which may be needed in worker to differentiate between jobs & establish the extent of difficulty of any job. Step 4: Developing A Job Description:- The information collected is to be developed in form of a job description. This is written statement that describes main features of job as well as qualifications. Step 5: Developing Job specification:-


The last step is to convert job Description statements into job specifications i.e. to specifically mention what personal qualities, traits, skills and background is necessary for getting the job done. Techniques of Job Analysis Data:- The determination of job tasks, skills and abilities necessary for successful. Performance and responsibilities internet in job can be obtained through such methods or approaches as the following:

(i) Personal observation (ii) Sending out questionnaires. (iii) Maintenance of log records (iv) Conducting Personal interviews.

(1) Personal Observation:- The materials & equipment used working conditions & probable hazards, and an understanding of what the work involves are the facts which should be known by an analyst. Direct observation is especially useful in jobs that consist of physical ability like jobs of draftsman, mechanic, or weaver.. (2) Sending Out Questionnaires:- This method is usually employed by engineering consultants. Properly drafted questionnaires are sent out to job-holders for complete & are returned to supervisors. However, information received is often unorganized & incoherent. The idea in issuing questionnaire is to elicit necessary information from job holders so that any error may first be discussed, with employee and after due corrections, may be submitted to job analyst. (3) Maintenance of Log Records:- The employee maintains a daily record of duties he performs, marking the time at which each task is started and finished. But this system is incomplete because it does not give us any desirable data on supervisor relationship, equipment used, and working conditions. Moreover, it is time consuming. (4) Personal Interviews:- May be held by analyst with the employees, and answers to relevant questions may be recorded. But this method is time-consuming &costly.

However, it may be noted that personal observation & interview approach are more or less complete & accurate. If a particular job is simple & repetitive observations may be only technique required. Otherwise in most cases, interview coupled with observation constitute desirable approach.


Recruitment /Search Definition:- According to Edwin. B. Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.” The aim of recruitment is to attract a large number of applications from job seekers. It makes the requirements of job known to the likely candidate in the job market. It provides sufficiently large group of qualified candidates so that most eligible employees can be selected. Thus recruitment is a positive activity which seeks to persuade people to apply for jobs. The process of recruitment:-

(i) Identifies different source of labour supply. (ii) Assesses their validity. (iii) Chooses the most suitable source or sources. (iv) Invites applications from prospective candidates for vacant jobs.

SOURCES OF RECRUITMENT:-

1) Internal Source (recruitment from within enterprise) 2) External Source (recruitment from outside)

A) INTERNAL SOURCES:- 1) Promotion:- Means shifting an employee to a higher position carrying greater pay, status & responsibilities Various positions in an organisation are usually filled up by promotion of existing employee on basis of merit or seniority or combination of both. 2) Transfer:- Refers to change in job assignment which may involve promotion, demotion or no change in terms of responsibility & status. Transfer may be either temporary or permanent depending upon necessities of filling jobs. Transfer generally involves no significant change in pay, status & responsibility of employees. Advantages:- 1) Employees are motivated to improve their performance. 2) Industrial peace prevails in enterprise because of promotional avenues. 3) It is cheaper source as compared to external source. 4) Transfer of job is a tool of training employees to prepare them for higher job.


5) It promotes loyalty among employees as they feel secured on account of chances of advancement. Limitations:- 1) The scope of fresh talent is reduced, when vacancies are filled through internal promotions. 2) The spirit of competition among employees may be hampered. 3) Frequent transfer of employees may reduce overall productivity of organisation. 4) There may be chances of conflict in fighting among employees who aspire for promotion to available vacancies as those not promoted may become unhappy & there efficiency may decline. EXTERNAL SOURCES 1) Advertisement:- Enterprise advertises vacancies through newspaper, trade journals & magazines. The content of advertisement & media through which advertisement is to be given is decided by Human Resource department. It is convenient & economical method. 2) Casual Callers:- On occasions people drop in without any announcement of vacancy to find out if jobs are available. A waiting list of such visitors may be prepared & they may be screened to fill the vacancies whenever they arise. 3) Gate hiring or Recruitment at factory gate: It is usually followed by factories to fill up vacancies at lower level. Large enterprises usually plays a notice on notice board specifying details of job available. A large number of unemployed persons assemble at gate where personnel manage scrutinize them & pick the persons as per requirement Small workshops recruit fitters, welders etc, through this source. 4) Educational Institutions:- School, colleges & professional institutions offer opportunities for recruiting their students. Prospective employeers verify credentials of students & conduct interview directly, placement cells have been set up in well known educational institutions to help students in securing suitable jobs. 5) Management Consultants:-


Help to recruit technical, professional & managerial personnel for example accountants, engineers. They specialize in middle level & top level executive placements. They maintain data bank of persons with different qualifications & skills & even advertise jobs on behalf their clients to recruit right type of personnel. 6) Recommendations:- Friends & relative of present employees are also good source of recruitment. Many concerns prefer such candidates as they generally stand surety for new recruits and their background is partly known & type of preliminary screening takes place. 7) Labour Contractor:-

Workers are recruited through labour contractors who are themselves employees of organisation. The dis advantage of this system is that if contractor leaves the organisation, all the workers employed through him will also leave. Recruitment through this source has been banned for public sector units. However, this practice is still common in case of construction industry. 8) Telecasting:- The practice of telecasting of vacant posts over T.V. (Doordarshan & other channels) is gaining importance these days. Special programmes like ‘Job Watch’, ‘Youth Pulse’, ‘Employment News’ etc, over T.V. have become quite popular in recruitment for various types of jobs. The use of T.V. as a source of recruitment is less as compared to other sources because it is an expensive medium. 9) Union list:- ‘Sometimes trade Unions list maintain list of candidates seeking employment in the concern. Such candidates could be recruited in consultation with union. 10) Central application file:-

A file is maintained of past applicants who were not selected earlier, in case of immediate requirements such candidates can also be contacted. Merits:- 1) Wide Options:- It brings large number of applicants as it permits enterprise to have free hands in making selection. 2) Fresh talent:-


Enterprise can expect to get fresh talented candidates from outside which leads to infusion of New Blood & new ideas in to enterprises. 3) Element of competition:- This is a healthy feature from point of view of enterprise as internal candidates have to compete with outside candidate. Limitations:- 1) Lengthy process:- It takes long time. The business has to notify vacancies & wait for applicantions to initiate selection process. 2) Costly process:- A lot of money has to be spent on advertisement & processing of applications. 3) Uncertain Response:- The candidates from outside may not be suitable for enterprise. There is no guarantee that enterprise will be able to attract right kinds of people from external sources. 4) Dissatisfaction among Existing staff:- They may feel that their chances of promotion may be reduced. Career Planning and Succession Planning:- A succession plan to fill key positions over time is essential for success & survival of an organisation. Its purpose is to identify & develop people to replace current incumbents in key positions in case of resignation, retirement, promotion, growth etc. succession can be within or from outside the organisation. Succession by people from within provides opportunities to employees for advancement in their careers. Complete dependence on internal sources may however cause conflicts & stagnation in the organisation. Similarly, complete dependence on outside talent may cause stagnation in career of present employees which may in turn lead to a sense of frustration and job dissatisfaction. Career planning & succession planning appear to be similar but not synonymous. Career planning covers all levels of employees where as succession planning is generally required for higher level executives. Generally, career planning is based on a succession plan for higher level executives. A succession plan involves identification of vacancies that are likely to occur in higher levels and locating probable successors. Succession planning facilitates continuity of organisation. Career planning may consists of charts showing career paths of different categories


of employees showing how they can advance up in the organisation. But a succession plan consists of a runner up chart or succession chart for a particular position such as General Manager.

Exhibit 1:- Career Paths for Various types of Jobs S.No. Name Current Designation Age 1 Mr. A Marketing Manager 59 2 Mr. B HR. Manager 58 3 Mr. C Finance Manager 57 4 Mr. D Production Manager 54

SELECTION

Selection mean a process by which qualified personnel can be chosen from the applicants who have offered their services to the organisation for employment. Thus, the selection process is a tool in the hands of the management. Selection involves a series of steps by which candidates are screened for choosing most suitable persons for vacant posts. It is done by evaluation of qualification, experience & other information provided by candidates. The object underlying selection process is eliminated of those judged unqualified to meet job & organisation requirements. Thus it tends to be a negative process as it reject good proportion of those who apply. SELECTION PROCEDURE:- 1) Preliminary Screening:- a) Receive of application:- Selection process starts with receipt of application by personnel department. b) Scruitiny:- All applications received are scrutinised to find out whether candidates fulfill minimum academic qualification & other requirements. c) Preliminary Interview: - It eliminates unqualified candidate Application Blank:- If candidate appears to have some chance of being selected, he is given prescribed application form known as “application Blank.” Application blank is a personal history question are. Application blank consist of following particulars usually. Indentifying information such as


name, address, age marital status, educational qualification, work experience etc, candidates are usually ask to fill up the application form in their own hand writing. 3. Employment test:- Candidates who meet minimum requirements appear written or oral tests as means of examining suitable for job. The various test include intelligence test aptitude test, trade test, general personality test, psychological test and proficiency est. depending on job requirements. These tests are selected and administereal. Some organisation may hold one or more test while some other may not hold test at all. Much depends on policy of top management, nature of jobs and availability of candidates. 4. Selection interview:- It basically consist of conversation between employer and prospective employee. The selectors ask for job related and some general questions and see the response of candidates it helps in avessing candidates strength and a weaknesses. Candidates interact with selector and the letter gets a first hand idea of personality and other qualities of candidates. Candidates also get a chance to seek information about enterprise, nature of the job, prospects of promotion. Ques. 4 Distinguish between training and development. Explain various techniques of development of managers. Ans. Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behavior. It attempts to improve their performance on the currents job or prepare them for an intended job. Development is a related process. It covers not only those activities, which improve job performance, but also those which bring about growth of the personality; help individuals in the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and woman. In organisational terms, it is intended to equip persons to earn promotion and hold greater responsibility. Training a person for higher and bigger job is development. And this may well include not only imparting specific skills and knowledge but also inculating certain personality and mental attitudes. Training is short term process utilizing a systematic and organized procedure by which non managerial personal learns technical knowledge and skills for a definite purpose. Development is a long term educational process utilizing a systema tic and organised procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose. Management development is any attempt to improve managerial performance by imparting knowledge, changing attitude or increasing skills. The general management development consists of (1) assessing the company’s strategic needs (for instance, to full future executive openings or to boost competitiveness). (2) Developing managers for future responsibilities.


There is more emphasis on choosing management development methods that are more organizationally relevant and effective that they have been in the past. Various techniques of management development include:-

(a) Management on-the-job training. (b) Off the job training.

Managerial on-the-job training methods include job-rotation, coaching/understudy approach and action learning. Job rotation means moving management trainees from department to broaden their understanding of all part of the business and to test their babilities. A manager may spend several months in each department. The person may just bean observer in each department but more commonly gets fully involved in its operations. Coaching/understudy approach: Here the person workers directly with the senior manager or with the person he or she is to replace; the latter is responsible for the executive of certain responsibilities, giving the trainee a chance to learn the job. Action learning programmers give managers and others released time to work full time on projects, analysis and solving problems in departments other than their own trainees meet periodically in four or five person project groups to discuss their findings. Several trainees may work together as a project group or compare notes and discuss each other’s projects.

Off the job training and development techniques

The off the job development techniques for managers include case study method; management games; role playing etc. Case Study method:- Case study method presents a trainee with a written description of an organisational problem. The person then analyzes the case, diagnoses the problem and presents his or her findings and solutions in discussion with other trainees. Management Games:- With management games trainees are dividend in to give or six persons group, each of which competes with the others in a stimulated marketplace. Management games can be good development tools. People learn best by getting involved, and the games can be useful for gaining such involvement. They help trainee develop their problem solving skills, as well as to focus attention on planning rather than just putting out fires. The group also usually elect their own officers and organize themselves; they can thus develop leadership skills and faster cooperation and team work. Roll Playing:- The aim of role playing is to create a realistic situation and then have the trainees assume the role of specific persons in that situation. When combined with the general instruction


and other roles for the exercise, role playing can trigger spirited discussions among the role player trainees. The aim is to develop trainee’s skills in areas like leadership and delegation.

UNIT –3 Compensation-Aims & components, Factors determining pay rates; Establishing pay rates, Job Evaluation; Pay for performance; Employee benefits & services; Performance appraisal, 360 degree feed back, Potential appraisal.

Compensation

“ Compensation refers to a wide range of financial and non-financial rewards to employees for their services rendered to the organisation.” It is paid in form of wages, salaries, and employee benefits such as paid vacations, insurance, maternity leave, free travel facility, retirement benefits etc. monetary payments are a direct form of compensating employees & have a great impact in motivating employees. The system of compensation should be designed in such a way that it achieves following objectives:

(1) Capable employees are attracted towards organisation. (2) Employees are motivated for better performance. (3) Employees do not leave employer frequently.

Base compensation: Wages and Salary

Base compensation includes monetary benefits to employees in form of wages or salaries. The term ’wage’ is used to denote remuneration to workers doing manual or physical work. Thus wages are given to compensate the unskilled workers for their services rendered to organisation. Wages may be based on hourly, daily, weekly or even monthly basis. The term ‘salary’ means compensation to office employees, foremen, managers & professional & technical staff. It is based on weekly, monthly &yearly basis. Thus time period for which salaries are paid is generally higher than in case of wage payments. Wages may be based on number of units produced (i.e. piece wage system) or time spent on job. But salary is always based on time spent on job. Factors determining pay rates: 1) Demand and supply:- Wage rates of workers depends upon demand and supply force in labour market. If the labour is in short supply, the workers will offer the services only if they are paid well. On the other hand, if the supply is more then workers available might get ready work at cheaper rates. 2) Bargaining Power: Where labour unions are strong enough to force the hand of employers, the wages will be determined at a higher level in comparison to other units where unions are weak.


3) Cost of living:- Wages of workers also depends upon the cost of living of the worker so as to ensure him a decent living wage. Cost of living varies under deflationary and inflationary pressures. Where labour uncons are strong and employer do not show enough awareness, here wage are adjusted according to cost of living index numbers. 4) Condition of product market:- Degree of competitions prevailing in the market for the product of the industry will also influence the wage level. For eg if there is perfect compition in the market the wage level may be at par with the value of net additions made by the workers to the total output, but may not reach this level in case of imperfect compition in the market. 5) Comparative Wages:- Wages paid by the other firms for the same work also influence the wage levels. Wage rates must also be in consistent with the wages paid by the other firms in the same industry so as to increases the job satisfaction among the workers. 6) Ability to Pay:- Wage rates are influenced by the paying ability of industry or firms to its workers. Those firms which are earning huge profits may afford to pay high wages and can provide more facilities to its workers in comparison to the firms earning comparatively low profits. (7) Productivity of labour:- Fligher productivity will automatically fetch more profit to the firm, where in turn workers will be paid high wages in comparison to other firms with low productivity. (8) Job Requirements:- If a job require higher skill, greater responsibility and risk, the worker placed on that job will naturally get higher wages in comparison to other jobs which do not require the same degree of skill, responsibility or risk. (9) Govt. Policy:- Since the bargaining power of the workers is not enough to ensure fair wages in all industries, the Govt. has to interfere in regulating wage rate to guarantee minimum wage rates in order to cover the essentials of a decent living. (10) Goodwill of the company:- A few employers want to establish themselves as good employer in the society and fix higher wages for their workers. It attract qualified employees. In addition there are other important factors which affect the individual differences in wage rates. These are: 1). Worker’s Capacity and Age 2). Educational qualification. 3). Work experience. 4). Promotion possibilities. 5). Stability of employment 6). Demand for product. 7). Profits earned by the organisation. 8). Hazards involved in work etc.


Affecting, determining and establishing pay rates.

Ans. Compensation may be defined as money received in the performance of work, plus the many kinds of benefits and services than organisations provide their employees. Money is included under direct compensations (popularly known as wages i.e. gross pay): while benefits come under indirect compensation and may consist of life, accident and health insurance and employer’s contribution to retirement, pay for vacation or illness and employer’s required payments for employees welfare as social security. Factor affective pay rates include:-

a) The organisation’s ability to pay b) Supply and demand of labour c) The prevailing market rates d) The cost of living e) Living wage f) Productivity g) Trade union Bargaining power h) Job requirements i) Management attitudes

Higher wages are given by those organisation which can afford them. Companies that have

good sales and therefore, high profits tend to pay higher wages than those which are running at loss or earning low profits because of high cost of production or low sales.

The labour market condition or supply and element forces operate at the national, regional

and local levels and determine wage structure and level. If the demand for certain skills is high and the supply is low, the result is a rise in the price to be paid for these skills.

Most of the companies adopt prevailing market safe or going wage safe criterion for

compensating its employees. This is done for several reasons. First, competition demands that competitors adhere to same relative wage rate. Second, various government laws and judicial decisions make the adoption of uniform wage rate an attractive proposition. Third, trade unions encourage this practice so that their members can have equal pay for equal work. Fourth, functionally related firms in the same industry require essentially the same quality of employees, with the same skills and experience. This result in a considerably uniformity in wages and salary rates, finally if the same or about the same general rates of wages are not paid to the employees as are paid by the organisational competitors, it will not be able to attract and maintain a sufficient quantity and quality of manpower.

The cost of living pay criterion is usually regarded as an automatic minimum equity pay

criterion. This criterion calls for pay adjustments based on increases or decreases in an acceptable cost living index.


The living wage criterion means that wages paid should be adequate to enable an employee to maintain himself and his family at a reasonable level of existence.

Trade unions do effect rate of wages. Generally, the stronger and more powerful the trade

union; the higher the wages. A trade union bargaining power is often measured in terms of its membership, its financial strength and the nature of its leadership.

Generally, the more difficult a job, the higher are the wages. Measures of job difficulty are

frequently used when the relative value of one job to another in an organisation is to be as curtained. Job are graded according to the relative skill, effort, responsibility and job conditions required.

Managerial attitudes have decisive influence on the wage structure and wage level since judgment is exercised in many areas of wage and salary administration including whether the firm should pay below average or above average rates, what job factors should be used to reflect job worth, the weight to be given below the structure and level of wages are bound to be affected accordingly. These matters require the approval of top executives.

Various factors for establishing pay rates include:-

1. These should be definite plan to ensure that differences in pay for jobs are based upon variations in job requirements. Such as skill, effort, responsibility or job or working conditions and mental and physical requirements.

2. The general level of wages and salaries should be reasonably in line with that prevailing in labour market.

3. The plan should carefully distinguish between jobs and employee. A job carries a A certain wage rate and a person is assigned to fill it at that rate. Exceptions sometimes occur in very high level jobs in which the job holder may make the job large or small, depending upon his ability and contributions.

4. Equal pay for equal work i.e. if two jobs have equal difficulty requirements, the Pay should be the same, regardless of who bills them.

5. An equitable practice should be adopted for the recognisation of individual differences in ability and contribution. For some units this may take the form of rate ranges, with in grade increases; in other this may take form of closely integrated sequences of job promotion.

6. The should be a clearly established procedures for hearing and adjusting with the regular grievance procedure if it exits.

7. The employees should be informed about the procedures used to establish wage rates. Every employee should be informed of his position and of the wage and salary structure. Secrecy in wage matters should not be used as a cover up for haphazard and unreasonable wage programme.

1. The wage should be sufficient to ensure for the worker and his family reasonable

Standard of living. Workers should receive a guaranteed minimum wage to protect them against conditions beyond their contract.


2. The wage and salary structure should be flexible so that changing conditions can Be easily met.

3. The wage and salary payments must fulfill a wide variety of human needs, Including the need for self actualization. It has been recognized that money is the only form of incentive which is wholly negotiable, appealing to widest range of seekers. Monetary payments of ten out as motivators and satisfiers interdependently of other job factors.

Ques 6 What is Performance appraisal? List out methods of Performance Appraisal? Explain in detail 360 degree performance appraisal method. Ans. Performance appraisal means evaluating an employee’s current or past Performance relative to the person’s performance standards. Appraisal involves: (i) Setting work standards (ii) Assessing the employee’s actual performance relative to these standards (iii) Providing feedback to the employees with the aim of motivating that person to eliminate deficiencies or to continue to perform above par. Managers usually conduct the appraisal using a predetermined and formal method. Various methods of appraisal include:-

a) Graphic rating scale method. b) Alternate ranking method c) Paired comparison method d) Forced distribution method e) Critical incident method f) Narrative forms g) Behaviorally anchored rating scales h) Management by objective (MBO) i) 360 degree feedback.

Graphic rating scale method:- The graphic rating scale method is the simplest and most popular technique for appraising performance. A graphic rating scale list traits (such as quality and reliability) and a range of performance values (from unsatisfactory to outstanding) for each trait. Subordinates are rated by circling of checking the score that best describes his or her performance for each trait. Then the total of assigned value is calculated. Alternate ranking method: - This method involves ranking employees from best to worst on a particular trait, choosing highest, then lowest until all are ranked. Since it is easier to distinguish between the worst and best employees and alternate ranking is quite popular. First, list all subordinates to be rated. Then indicate the employee who is the highest on the characteristic being measured and also the one who is lowest. The process continues till all the employees are ranked on similar fashion. Paired comparison method:- Paired comparison method helps make the ranting method more precise. For every trait (quality of work, quality etc), Pairs are made and every subordinate is compared with every other subordinate.


Forced distribution method: - Forced distribution method is similar to grading on a curve. With this method, manager place predetermined percentage or rates in to performance categories. For example you may decide to distribute employees as follows: 15% high performance 20% High average performance 30% average performance 20% low average performance 15% low performance Forced distribution means tow things for employee: Not everyone can get an A; and ones performance is always rated relative to ones peers. One practical, one practical, if low-tech, way to do this is to write each employee’s name on a separate index card. Then for each trait (quality of work, creativity etc.) managers place the employee’s card in the appropriate performance category. Critical Incident Method:- Critical incident method involves keeping a record of uncommonly good or undesirable examples of an employee’s work related behavior and reviewing it with the employee at predetermined time. Narrative Forms:- The final written appraisal is often in narrative form. A person’s supervisor is asked (i) to rate the employees performance for each performance factor or skill (ii) to write down examples and (iii) an important plan. This aids the employee to understand where his or her performance was good or bad and how to improve that performance. Behaviorally Anchored Rating Scales is an appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative example of good and poor performance.

Employees benefits & Services Health of Workers in Factories See- 11 to 20 of Factories Act 1948 contain provision regarding creation provision regarding creation of Healthy working conditions for Workers:- 1) Cleanliness (Sec11):- Every factory should be kept clean & free from drain, nuisance, dust. It should be suitably cleaned & repainted. 2) Disposal of wastes & Effluents:- (Sec 12) Proper provision should be made for disposal of waste due to manufacturing process.


3) Ventilation & Temperature :- (Sec 13) There should be adequate ventilation by circulation of fresh air & such a temperature as will secure to workers there in resonable conditions of comfort & prevent injury to health. 4) Dust and fume:- (Sec 14) Effective measure must be taken to prevent dust or fume or other impurity which are injurious to workers. Exhaust appliance are necessary for this purpose. 5) Artificial Humidification :- (Sec 15) In respect of all factories in which humidity of air is artificially increased, the state government may prescribed standards of humidification, regulate methods used for artificially increasing humidity of air. 6) Over crowding :- (Sec 19) No room in any factory should be overcrowded & at least 350 cubic feet of space for every worker should be provided. 7) Lighting :- (Sec 17) In every part of factory there should be proper lighting natural or artificial or both. Glazed windows & skylights should be used for lightings. 8) Drinking Water: - (Sec 18) In every factory, effective arrangements should be made to provide & maintain suitable points conveniently situated for all workers employed there in.

Unit-IV Industrial Relations; Industrial disputes and dispute resolution; Trade Unions; Employee grievances and Discipline; Participation and Employee empowerment.

INDUSTRIAL RELATIONS The term ‘industrial Relations’ refers to all type of relationships between all the parties concerned with industry. The parties related to industry are the workers and management representing owners. Thus, industrial relations connote a vast complex relationships obtaining between management and employees, union and management, union & employees and between employees themselves. Both parties to industrial relations have a common interest in industry but many a time, they are found to be pulling in different directions which leads to industrial unrest. Therefore, it has become necessary to secure the cooperation of both workers and management to achieve good industrial relations.


According to DaleYoder, “ The term ‘industrial relations’ refers to the relationship between management and employees or among employees and their organisation that arise out of employment.”

Its scope includes three rarely distinct areas:-

(i) Relations between managers and individual workers. (ii) Collective relations between employers and labour unions and. (iii) The role of government in the regulation of these relationship. These three closely

associated areas are often referred to respectively as personnel management, collective bargaining and labour legislation.

Objectives of Industrial Relations

The Primary objective of industrial relations is to maintain good & healthy relations between workers and management in the enterprise. All other objectives revolve around this primary objective. Some of these are as below:-

(1) To Promote healthy Labour-management relations. (2) To protect interest of employees as well as management by securing highest level of

mutual understanding and goodwill among them. (3) To raise productivity to a higher level which is the need of the day & to contribute to

economic development of the country. (4) To check industrial conflicts & minimise the occurrence of strikes, lockouts & gheraos. (5) To minimise labour turnover & absenteeism by providing job satisfaction to the workers. (6) To facilitate & develop industrial democracy based on workers’ partnership in

management of industry. (7) To establish government control over industries to regulate production and industrial

relations. Parties to Industrial Relations (1) Workers & their Organisation:- The personal characteristics of workers, their culture, educational attainments, qualifications, skills, attitude towards work etc, play an important role in industrial relations. Workers’ organisations, known as trade unions, are political institutions. (2) Employers & their Organisations:- The employers are a very important variable in industrial relations & regulate their behaviour for getting high productivity from them. Industrial unrest generally arises when the employers demands from workers are very high and they offer low economic & other benefits. (3) Government:-


The government exerts an important influence on industrial relations through such measures as providing employment, and regulating wages, bonus and working conditions, through various laws relating to labour.

Significance of good Industrial Relations or Industrial Peace (1) Industrial Peace:- Cordial industrial relations bring harmony & remove causes of disputes which leads to industrial peace which is necessary for productivity and growth. (2) Higher Productivity:- Due to cordial industrial relations, workers take interest in their jobs and work efficiently which leads to higher productivity and production & thus contribute to economic growth of the nation. (3) Industrial Democracy:- Sound industrial relations are based on consultation between the workers and management which help in establishment of industrial democracy in the organisation. (4) Collective Bargaining:- Good industrial relations are extremely helpful for entering into long-term agreements as regards various issues between Labour and Management. (5) Fair Benefits to Workers:- The Workers should get sufficient economic and non-economic benefits to lead a happy life. It is possible when relations between workers and management are cordia l and productivity is high. (6) High Morale:- Good industrial relations imply existence of an atmosphere of mutual cooperation, confidence & respect within enterprise. In such an atmosphere, there are common goals, which motivate all members of organisation to contribute their best. (7) Facilatation of change :- By creating a climate of cooperation, & confidence make the process of change easy. Hence, full advantage of latest inventions, innovations & other technological advancements can be obtained. The work force easily adjusts itself to required changes for betterment. Thus, smooth industrial relations are necessary and useful to employers and employees. Rapid industrial growth and high industrial productivity are possible when smooth industrial relations exist. Along with this, workers get higher wages and other monetary benefits.


Trade Union

A trade Union may be defined as an organisation of employees formed on a continous basis for the purpose of securing diverse range of benefits. Sec (h) of Indian Trade Unions Act, 1926 defines trade union as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.” According to Edwin.B.Filippo, “ A trade union is an organisation of workers formed to promote, protect and improve, through collective action, the social, economic and political interests of its members.” Features of trade Unions:-

a) They are voluntary association of workers in one or more occupations. b) They are formed for the pursuit of common interests of members. They protect the

economic interests of members and also promote their welfare. c) They always act collectively i.e. through united action of members. d) They are concerned with economic, cultural, political and social life of their members.

Objectives of Trade Union:- Trade Unions are organised for protection and promotion of interests of their members in particular and workers in general. It generally pursue the following broad objectives. (1) Steady employment:- Steady employment is something which the employer by himself may not be able to guarantee to the workers. Achievement of this aspiration may thus involve workers in political action, through their unions, for maintenance of full employment. (2) Rationalisation of personnel policies:- The economic security of an employee is determined not only by level of wages and duration of his employment but also by management’s personnel policies - in its selection of employees for lay off, retrenchment, transfer and promotion, the assignment of employees to jobs etc. if these decisions are based on subjective evaluation, there is no security for workers. If such decisions are governed by rules and rational policies, there is greater assurance for fair treatment. (3) Voice in decisions affecting workers:- workers may successfully pressurise for higher wages workers want to know what his chances are for continued attachment to the company. What is “the success of the company” to


him if in transferring the plant, say, from Delhi to Ghaziabad he is laid off? The intervention of trade union in such decisions of management is the only method by which the workers is able to achieve any degree of control over the affairs that concern him. (4) Recognition and participation:- Another objective that unions seek to achieve is winning recognition for workers that they are equal partners with management in the task of production. It is an intellectual quality that is the intellectual faculties of workers are no inferior to those of management. (5) Gaining legislative enactments:- To Provide legal sanctions to its demands, the unions attempt to get these framed in form of Acts so that they become permanent features of the contract between employers and workers. (6) Miscellaneous Services:- Modern trade union also engage in providing educational, medical, recreational and other facilities for development and welfare of their members. Functions:- For the achievement of the above mentioned objectives, the trade Unions generally perform the following functions:-

(i) Collective bargaining with the management to settle terms and conditions of employment.

(ii) Advise the management on personnel policies and practices. (iii) Taking up the individual and collective grievances of the workers with the

management. (iv) Work for achieving better say of workers in the management of affairs of the

enterprise which influence the lives of the workers directly. (v) Organising demonstrations, strikes, etc, to press demands of workers. (vi) Education of workers and their children. (vii) Welfare and recreational activities for their members. (viii) Representing of workers in various national and international forums. (ix) Securing legislative protection for workers from the government.

GRIEVANCES

Grievances is a feeling of discontenment or distatisfaction among workers regarding

anything concerned with the company. Grievance may be felt by any party (employer and employee) against the other party. Definition:-


According to Richard P. Calhoon, “ a grievance is anything that an employee thinks or feels is wrong, generally accompanied by an activity disturbing feeling.” According to Dale.S.Beach,” Grievance is any dissatisfaction or feeling of injustice in connection. Sources of Grievances:- The causes of grievances may be grouped under three heads- (1) Grievances resulting from Managerial Polices:-

a) Wage rates or scale of Pay. b) Overtime c) Leave d) Transfer- improper matching of worker with the job e) Seniority, Promotion and discharges. f) Lack of career planning and employee development plan g) Lack of role clarity. h) Lack of regards for collective agreement. i) Hostility towards a labour union. j) Autocratic leadership style of supervisors.

(ii) Grievances resulting from Working conditions:- (a) Unrealistic. (b) Non-availability of proper tools, machines and equipments for doing the job. (c) Tight Production standards. (d) Bad working conditions. (e) Poor relationship with the supervisor. (f) Negative approach to discipline.

(iii) Grievances resulting from Personal factors.

(a) Narrow attitude (b) Over-ambition (c) Egoistic personality (d) Non Cooperative fellow workers (e) Personal Problems outside factory.

Handling of Grievances:- Grievances are symptoms of conflicts in enterprise. So they should be handled very promptly and efficiently. Coping with grievances forms an important part of manager’s job. The manner in which he deals with grievances determines his efficiency in dealing with subordinates. A manager is successful if he is able to build a team of satisfied workers by removing their grievances. While dealing with grievances of subordinates, it is necessary to keep in mind the following points:


(1) A grievances may or may not be real. (2) Grievances may arise out of not one cause but multifarious causes. (3) Every individual does not give expression to his grievances.

For the purpose of handling grievances efficiently, it is necessary to find & analyse the grievances of the subordinates. If a grievances is found to be real or genuine, the corrective action should be taken immediately. But if grievances arises due to imagination or distributed frame of mind of workers, then it is necessary to exp lain & clear up the matter. Before dealing with the grievances, their causes. He may realise the existence of grievances because of high labour turnover, high rate of absentecism & poor quality of work. While dealing with grievances, a manager cannot depend upon any readymade Solutions. Every case has to be dealt with on its merits. The following guidelines may be followed to deal effectively with the grievances:- (1) The complainant should be given a patient hearing. He should be allowed to express himself completely. (2) Attempts should be made to get at the root of the problem. (3) The management must show its anxiety to remove the grievances of the workers. (4) If the grievances are real & their causes are known, attempts should be made to remove the causes. (5) If grievances are imaginery, attempts should be made to cousel the workers. Grievance Procedure:- These include:- (i) Open door policy. (ii) Step- ladder procedure. (I) Open Door Policy:- under this procedure, the employees are free to meet the top executive of the organisation & get their grievances redressed. Such a policy may work well in small organisation and may not be suitable for big organisation because top executives will be too busy in other matters Moreover, top management is not too familiar with working conditions of operative employees. It may be difficult for it to attend to employee grievances because of lack of sufficient information. Lastly, it is also said that this policy is suitable for executives to walk through & not operative employees. The employees may even hesitate to go to top executives with their grievances.


(ii) Step-Ladder Procedure:- Under this procedure, aggrieved employee has to proceed step by step in getting his grievances heard & redressed, as given in diagram. Step No. 1

Step No. 2 Step No. 3

Step No. 4

Step No. 5 Last Step

Step- ladder Grievance Procedure Firstly, he has to present his grievance in writing to his supervisor or foreman. If he is not satisfied with his decision, he may go to the head of the department. There may be joint grievance committee after the decision of the head of department is not acceptable to the employee. If the committee also fails to redress his grievances, the matter may be referred to chief executive. The grievance procedure will be said to be exhausted if chief executive is also

Filing of Written grievances

Supervisor or Foreman

Head of Department

Joint Grievances Committee

Chief Executive

Voluntary Arbitration

SETTLEMENT


not able to redress the grievance. The worker should not take any action against management until the whole grievance procedure has been exhausted. The grievance assume the form of a conflict after the worker is not satisfied with the decision of chief executive. For maintaining industrial peace in the plant, it is advisable to refer such grievance to the voluntary arbitrations. The award of arbitrator should be binding on both the parties.

DISCIPLINE

Meaning:- Maintenance of harmonious human relations in an organisation depends upon promotion and maintenance of discipline. No organisation can prosper without discipline because it is a matter of utmost concern for all organisations. Discipline in Industry may be described as willing cooperation and observance of rules and regulations of the organisation. Simply stated, it means orderliness. It implies absence of chaos irregularity and confusion in behaviour of workers. Definition:- According to Ordway Tead, “Discipline is the orderly conduct of affairs by the members of an organisation, who adhere harmoniously in forwarding towards the end which the group has in view and willingly recognise that.” Aspects- There are 2 aspects of discipline. (a) Positive Aspect :-

Employees believe in and support discipline and adhere to rules, regulations, and desired

standards of behaviour. Positive discipline takes places whenever the organisational climate is marked by aspects such as payment of adequate remuneration and incentives, chances for career advancement, etc, which all motivate employees to adhere to organisation rules & regulations. (b) Negative Aspect:- Employees sometimes do not believe in discipline. As such, they do not adhere to rules, regulations and desired standards of behaviour. This approach to discipline is called negative approach or corrective approach or punitive approach. In this approach people are forced to observe rules and regulations on account of fear of fine, demotion or transfer. Importance:-


Discipline is very essence of life. Absence of discipline means chaos and disorder. In an industry big or small, manpower is the most important factor which can be used effectively only if there is discipline in the industry. It can be brought about by fear or punitive actions, it should be brought voluntarily. A man may work under compulsion but he will constantly be in conflict with his natural impulse and strain which can’t be considered good social relations in work group. So in order to bring discipline there should be good relationship between employer and employee and interest of workers should also be highlighted. Maintenance of discipline is a prerequisite for the attainment of maximum productivity, not only of workers but also of entire nation. Self-discipline is the highest form of discipline and management effort should be directed to encourage this. True discipline is education because it changes attitude of workers towards their work and workplace. Thus, discipline is to be developed from within and it has to be reformative and not punitive. Principles:- The basic prerequisites of discipline in industrial organisations are as follows:-

1) The objective of industrial discipline should be clearly stated and specify the standards expected of the work men.

2) Specific and clear rules and regulations should be laid down in consultation with the workers which serve as code of conduct for workers and managers.

3) Rules must be communicated to all in organisation and must be understood in same terms.

4) The rules of conduct must contain provision for investigation and settlement of grievances arising out of and during course of employment.

5) The management should ensure that their own conduct and policies do not encourage breach of discipline. This will promote self-discipline among workers.

6) The enforcement authority must be specified. The procedure for appeal against disciplinary action by aggrieved party should also be provided.

7) The quantum of prescribed punishment in specified cases of indiscipline should be known.

8) All rules and regulations should be executed objectively and consistently. They should be appraised regularly to keep them suitable and upto date.

9) The discipline policy should seek to prevent the breach of discipline rather than to administer penalties. Penalties should be used only when they become absolutely necessary.

10) There should be suitable grievance procedure for the prompt redressal of all grievances of employees. All awards & agreements should be implemented with out delay and discrimination.

11) A discipline committee may be constituted to look into the causes of indiscipline in the enterprise and to suggest suitable measures for their removal.


EMPOWERMENT Empowerment occurs when employees are adequately trained, provided with all relevant information & the best possible tools, fully involved in key decision & are fairly rewarded for result. Empowerment is a key building block of progressive management by those who view power an unlimited resource. The more power you give away (to lower level), the more you have in terms of productivity & performance. This can be a difficult concept to grasp for traditional authoritarian managers who see empowerment as a threat to their authority. Today, the issue is not empowerment verses no empowerment. Rather the issue is how empowerment should take place. The famous exp. Of empowerment a total Quality Management (TQM) which is employee driven for ensuring best possible quality products & services for satisfaction of customers. TQM empowers employees at all levels in order to tap their full creativity, motivation & commitment. The other practices which encourage teamwork & employer involvement include suggestion system, quality circles, self managed team, participative leadership etc

Documents

Personnel Management or Human Resource Management